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Saturday, June 13, 2009

Insider Transactions Continue at Bullish Levels

In April I discussed how insider transactions were at bearish levels as insiders didn't appear to be sold on this rally. Now it appears their sentiment has changed as insider transaction levels have moved toward bullish levels and have stayed there for a few weeks straight.

This is a natural progression. The longer the rally in stocks progresses, the more sentiment improves. Not just with individual investors and fund managers, but corporate insiders. I would attribute the spike of selling in April to some pent up demand. Insiders needed to sell some stock but were waiting for better prices. We're now back to a more normal level, which now makes this indicator less useful. I view insider transactions as a useful indicator only when it spikes one way or the other.

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Welcome to "In the Know." Here I discuss trends in the market, and how I think investors can profit from them. I'll discuss specific stocks, sectors, and economic/political trends.

I'm a student of the markets and am constantly looking for new ways to gain an edge, but for the most part, I'm a value guy. I think you have to be flexible to be a successful investor, but discipline is by far the most important factor.

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